Trading bitcoin for beginners to learn profit, we find when the Bitcoin price closed with a full candle above the 7-day moving average, and the price achieved weekly green candles above it, and closed below it with only five low-volume candles in trading, with simple profit-taking, within the framework of the general trend Rookie. It did not close below the 20-day moving average or just once, indicating the strength of the upside.
By looking at historical bitcoin data from March 2020 until now on the weekly time frame.
We find when the Bitcoin price closed with a full candle above the 7-day moving average, and the price achieved green weekly candles above it, and closed just below it with five low-volume candles, with small profit-taking, within the framework of the general bullish trend. It did not close below the 20-day moving average or just once, indicating the strength of the upside.
Trade management: 2 days after entry, if the trade is still open, move the stop loss up. And let the winning deals continue.
Exit strategy:
When the price closes in a full candle below the SMA 20 or at the intersection of SMA 7 with the SMA 20, you can exit the entire trade for the cautious investor.
Of course, if the price is close to the desired target and there are clear signs of running out of momentum, or it appears that the price is actually reversing against you, it makes sense to exit early.
It is important not to enter sideways trades ... you may get false signals. Alternatively, a safe entry with the breakout of the last previous high.
And use Japanese candlesticks to understand the psychology of traders. Do they tend to buy or sell? To understand the language of price charts, you need to learn Japanese candlesticks, as they are similar to the alphabet of any language.
These are the full rules of strategy. Novice traders can trade with it knowing that it has performed well in the recent period, but the trader should be aware that most of the trades are not profitable.
So, be flexible with the rules for your exit strategy, as this area needs a lot of learning. Most traders find it difficult to exit points, or in other words psychologically difficult.
You may want to start with a strict exit strategy, indicating that it is time to exit the trade.
In the same context, this strategy can be used in a shorter time frame than the daily chart. We recommend starting with the daily chart and sticking to it, but more experienced traders can drop to the 4 hour or even the hourly charts once the daily chart gives an entry signal, trying to find a more accurate entry point.
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